EUR/JPY Price Analysis: Slumps below 161.00, sellers targeting key support level
- EUR/JPY falls 0.29%, influenced by BoJ Governor Ueda's hints at possible monetary policy normalization.
- Technical analysis shows the pair in a neutral stance, with a potential drop below the Tenkan-Sen at 160.22 opening the path to 160.00 and below.
- A rebound above 161.00 could propel EUR/JPY towards the January 19 high of 161.87, eyeing further resistance at 162.00 and 163.72.
The EUR/JPY tumbled below the 161.00 figure on headlines of the Bank of Japan (BoJ) Governor Kazue Ueda, suggesting that it could normalize monetary policy if inflation picks up sustainably throughout the year. Therefore, the cross-pair lost 0.29% on Wednesday, and as Thursday’s Asian session began, the pair exchanged hands at 160.46, down 0.06%.
From a technical standpoint, the EUR/JPY is neutral-biased in the near term after peaking at around 162.00. If sellers drag the spot price below the Tenkan-Sen of 160.22, that could pave the way to challenge the 160.00 figure. A breach of the latter could push prices to the Senkou Span A at 159.34, followed by the Senkou Span B at 158.71.
On the other hand, if buyers lift the exchange rate above 161.00, they ought to grab the January 19 high at 161.87. Further upside is at the 162.00 figure, followed by the last cycle high achieved on November 27 at 163.72.
EUR/JPY Price Action – Daily Chart
EUR/JPY Technical Levels